Arms length transaction question

[Rick Bassett]

I am setting up a LLC for property management. The LLC will manage my properties, which are single member LLC's as well as well as properties for other owners.

My plan is to have my property management LLC collect a reasonable and competitive management fee from all owners (including my LLC's) to manage their properties.

My accountant says that I can collect the fee from other owners but I am not allowed to collect fees from my own LLC's as that isn't an arms length transaction and it isn't allowed by the IRS.

It seems to me that any property owner could hire a property management company to manage their property and it shouldn't a matter if they hold an interest in that property management company as long as the services being received and pricing paid are comparable to what other clients (owners) of the property management company are receiving.

I really don't believe the advice my accountant is providing, which is why I am posting here for opinions.